After the growth and value rally last year, 2021 has seen a marked shift of emphasis on to actual company results over sentiment and expectation. We believe this should continue, and therefore favor quality companies.
Global Franchise: outperformance since start of 2021 earnings season. There has been a change in leadership within equity markets
Source: Ninety One, Morningstar, June 30, 2021.
The above charts show daily returns. The returns are net of a 0.75% management fee (NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD.
Global Franchise has the highest exposure to quality companies relative to a sizeable competitor universe with no drift in exposure
Source: Style Analytics, Ninety One, as at June 30, 2021. Quality tilt shown month on month as the average of managers tilt score to ROIC, ROA, Net Profit Margin, Gross Profit Margin, and Returns Stability. ̒Global Quality Manager’ representative of strategies in either the eVestment Global Large Cap Equity or eVestment Global All Cap Equity universe, who have quality in their strategy name or have stated quality as their equity style emphasis in their eVestment strategy profile, where holdings are available in style analytics or can be sourced from other sources for analysis. The portfolio may change significantly over a short space of time.
Source: FactSet, Ninety One, 31 July 2021. The portfolio may change significantly over a short period of time. The above reflects the portfolio characteristics reweighted excluding cash and cash equivalents. Inception date: 30 April 2007.
1. FCF Yield calculation excludes companies classified in the Banks Industry Group according to GICS.
For further information on indices, please see the Important information section.
Global Franchise alpha cycle
Cumulative (I-Acc) outperformance since inception*
Annual performance in USD (%)
|Global Franchise I Acc*||-32.41||36.8||6.8||8.4||15.8||16.4||4.4||9.2||0.9||24.9||-3.6||28.2||16.3|
|MSCI AC World NR**||-40.7||30.0||11.8||-5.9||16.1||22.8||4.2||-2.4||7.9||24.0||-9.4||26.6||16.3|
Past performance is not a reliable indicator of future results, losses may be made.
Source: Morningstar, 31 July 2021. Performance is net of fees (NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD.
*Inception date 10 April 2007. The performance is based on the OEIC Ninety One Global Select Equity Fund from 10 April 2007 which then merged into the Luxembourg-domiciled Ninety One GSF Global Franchise Fund on 04 July 2009.
** Benchmark: At Inception = MSCI World NR; Current Since 1 Oct 2011 = MSCI AC World NR.
The Fund is actively managed. Any index is shown for illustrative purposes only.
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.
Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.